Jakarta, Gatra.com – President of the Republic of Indonesia (RI) Joko Widodo stated the ban on bauxite exports for the downstream program. Transnational Institute researcher Rachmi Hertanti explained that the State must protect national interests.

“It must be the duty and responsibility of the State, how they should defend state sovereignty on the diplomatic side of international trade. Protecting national interests is natural for the government to do,” she said in a discussion titled “Reflection on the Just Energy Transition Agenda in Indonesia’s Mineral Supply Chain Policy,” Wednesday (21/12).

He explained that this policy is a policy that should have been in effect for a long time. This is related to how natural resource management is utilized to bring prosperity to the community.

Similarly, the National Coordinator of the civil society organization Publish What You Pay (PWYP) Indonesia, Aryanto Nugroho said that this policy had been introduced previously. This mandate has been carried out firmly by the government since the beginning.

“That is the mandate of Law Number 3 of 2020, especially article 170 A. Although, if you read the journey of this downstream process, the export ban should have been in effect since 2014,” he explained.

Article 170A reads those holders of KK, IUP Production Operations, or IUPK Production Operations of metal minerals can sell certain unrefined metal mineral products in a certain amount abroad within a maximum period of 3 (three) years from the date this Law comes into force. This means that the ban on bauxite exports in 2023 will realize the rules that have been set.

He mentioned that the government often conducts relaxation to make it happen. This relaxation was carried out in 2017, which was then extended again until 2023 based on Law Number 3 of 2020. This shows the government’s delay and lack of firmness in prohibiting exports.

“The government has gone back and forth from 2014 to 2017 and relaxed again to 2023. This means that the Indonesian government itself is inconsistent,” he said.

Ary said that the commitment to regulations and policies issued by the government must be strengthened. In addition, in developing domestic bauxite processing, he said there needs to be an industrial roadmap from upstream to downstream by adopting inclusive and sustainable development principles with climate change adaptation targets.

The government has decided to ban the export of bauxite ore while encouraging the domestic bauxite processing and refining industry. The ban will come into effect in June 2023. From this domestic bauxite industrialization, Jokowi said that state revenues are expected to increase from Rp21 trillion to approximately Rp62 trillion.

Source: Gatra